If you’ve been sitting on a second property, a lake cabin, or even your primary home with plans to move soon, you're probably wondering what to do with it.

With the summer season in full swing and the market shifting, I’m hearing this question a lot:
“Should I list it as a short-term rental or hold it as a long-term investment?”

The answer depends on your goals, your location, and how hands-on you want to be. This post breaks down the pros and cons — plus a few questions I always walk through with clients before they decide.

Let’s make this make sense for your life, not just the market.

Why This Matters Right Now?

We’re closing out July 2025, and Minnesota is still in peak tourism and real estate activity. Whether you're in the Twin Cities, up north, or somewhere in between, demand looks different this time of year — and you’ve got options.

Here’s how you make the most of them.

Option 1: Short-Term Rental (STR)

This can be a great seasonal play — especially during the peak tourism months (July–August) when demand is high and people are booking fast.

If your property is located near:

• Popular lakes like Lake Minnetonka, Gull Lake, Mille Lacs, or Pelican Lake

• Vacation destinations like Duluth, Stillwater, Ely, or Grand Marais

• Event-heavy neighborhoods in Minneapolis, St. Paul, or Rochester
  
  

… then you’re sitting on short-term rental potential.

Pros:

• High nightly rates during peak summer

• Great way to generate income without a long-term tenant commitment

• Flexibility — rent it when you want, block it off when you don’t

• Good option if you plan to sell next year but want income now
  
  

Tips:

• Make sure your city allows STRs — Duluth, Minneapolis, and other areas require permits and inspections

• You’ll need professional photos, a furnished interior, and strong reviews to stay competitive

• Consider hiring a local property manager or cleaner — turnover can get overwhelming fast

• Price competitively by checking local listings weekly

Option 2: Long-Term Rental

If you’re looking for predictability, a long-term lease may be your best move. Especially if you want income with less day-to-day involvement.

If your property is located near:

• College towns like St. Cloud, Mankato, or Duluth (perfect for school-year leases)

• Medical and tech corridors like Rochester or parts of the Twin Cities suburbs

• Family-focused neighborhoods with good schools and commuting options
  
  

… then your rental may be better suited for a long-term tenant.

Pros:

• Predictable, stable income month to month

• Less maintenance and communication compared to short-term guests

• Easier to qualify for conventional financing and investment loans

• Ideal if you’re not local or don’t want to manage guests
  
  

Tips:

• If possible, align lease terms with the academic calendar (August/September start dates)

• Screen tenants thoroughly — a good long-term tenant can make your life easier

• Make small upgrades (new paint, fixtures) to attract higher-quality renters

• Consider offering flexible lease terms (e.g., 9 months) if you're unsure about a long-term commitment

Market Pulse – Minnesota, Late Summer 2025

Right now, I’m seeing a shift. Sellers who aren’t getting the price they want are turning to renting instead. Buyers are still out there, but many are cautious thanks to rates and pricing. Meanwhile, short-term rental demand is up, especially near lakes and local event hubs.

Bottom line? There’s money on the table — but the smart move is choosing the strategy that works with your timeline, your location, and your comfort level with property management.

Not Sure Which Way to Go? Ask Yourself:

1. Do I need quick income, or am I playing the long game?

2. Is this property in a seasonal destination or a year-round demand area?

3. Do I want flexibility, or do I want to be hands-off?

4. Am I prepared to follow short-term rental regulations in my city?

PRO Tip: YOU CAN DO BOTH!

Plenty of investors are running a hybrid strategy:

• Rent short-term through summer while demand is high

• Then switch to a 9- or 12-month lease starting in the fall

• Or hold the property until spring and list when the market picks back up
  
  

You don’t have to lock yourself into one plan forever — just make sure the next 6–12 months are working for you, not just the market.

Final Take

This is the season to act. Whether you short-term rent, hold for the long haul, or try both — your property should be working smarter, not sitting still.

Have a property you’re unsure what to do with?
Reach out — I’ll help you figure out how to make it work for your goals.